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Growth Portfolio 2 - May

May 2005

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

A month of indiscriminate mark downs amongst small stocks, in most cases on very thin volumes, resulted in the portfolio declining by 10%.This was a substantial underperformance versus the two main benchmarks which were broadly unchanged. Pity we didn't take our own advice to more aggressively take profits as outlined in the Portfolio comment in March but having said that, no bell rings at the top and we have been taking profits on the way up in a number of constituents (the asterisk represents holdings where we have taken profits in holdings to leave the remainder for free). This year may be a repeat of last when most small caps were hidebound in tight ranges from May through toSeptember before the start of a strong rally. That ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X

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